Agnico Eagle Mines Limited (AEM-TSX, AEM(NYSE) said on Friday that it had entered into a subscription agreement with… Cadillac Mining Company (TSX-Cady), a company in the process of completing a massive $385 million IPO.
Cadillac Mines is a Canadian mineral exploration and development company with a focus on developing a portfolio of significant gold and minerals projects along the prolific Cadillac-Lardier break in Ontario and Quebec. The portfolio includes the Kerr Edison Project, the Galway Project, and the Geminid Nickel Sulphide Project.
Agnico said it has agreed to acquire 8.7 million Cadillac common shares at a price of $6.90 per share for a total consideration of $60 million. The private placement is subject to certain closing conditions, including the closing of the Cadillac initial public offering. The private placement is expected to close on August 5, 2026.
Cadillac on Friday announced the pricing of its initial public offering of 47.07 million common shares at $6.90 per share, and 6.30 million private flow-through shares at $9.52 per flow-through share. The total proceeds from the IPO are $385 million.
The company said it has submitted and obtained receipt of the final base prospectus from the securities regulatory authorities in each province and territory in Canada. The offer size has been increased from the initial size of approximately US$363 million specified in the final prospectus due to increased demand.
The Kerr-Addison project is a major Cadillac asset, located in McGarry Two., Ontario. It hosts an indicated resource of 3.4 million ounces of gold, with a further 2.2 million ounces in inferred grade.
Prior to entering into the subscription agreement, Agnico-Eagle owned 22.8 million shares of Cadillac common stock representing approximately 9.70% of the issued and outstanding shares on a undiluted basis. Upon closing, Agnico is expected to have 31.5 million common shares representing approximately 11.09% of the issued and outstanding shares on a non-diluted basis after giving effect to the IPO.
Agnico is acquiring the shares as part of its strategy of acquiring strategic locations in potential opportunities with high geological potential.
Under the agreement, Agnico will be entitled to certain rights, including the right to participate in equity financing in order to maintain its pro rata ownership interest in Cadillac at the time of any such financing.
Upon the closing of the IPO, Agnico will enter into an underwriting agreement for the benefit of the underwriters of the IPO. Under the Agreement, Agnico will agree that it will not, directly or indirectly, without the prior written consent of the Guarantors, offer, sell, pledge or otherwise dispose of any common stock or any securities convertible into common stock, or conduct any short sale. Agnico-Eagle is Canada’s largest mining company and the third largest gold producer in the world.
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